Net inflow of funds from interest rate-linked financial products increased due to the rise in government bond interest rates in major countries such as the United States.

(Seoul = Yonhap News) Reporter Go Eun-ji = Recently, as government bond interest rates in major countries such as the United States continue to rise rapidly, financial products that follow interest rates or bond yields are becoming popular.

According to Koscom ETF CHECK on the 3rd, the ETF with the largest net inflow from the 28th to the 30th of last month, the first business day after the Chuseok holiday, was 'TIGER CD Interest Rate Investment KIS (Synthetic)' of KRW 557.6 billion.

This ETF is a product that uses the Certificate of Deposit (CD) interest rate investment index as the base index and manages the rate of change in net asset value per share similar to the rate of change in the underlying index.

From the 1st of last month to this day, the ETF's rise rate was 0.32%, and although there was no significant increase, it continued to rise gently despite the volatile market. In particular, from the 28th of last month to this day, KOSPI fell 1.20%, but this product rose 0.07%.

There was also a net inflow of 210.6 billion won into ‘KODEX short-term bonds’, the 5th largest amount.

This product includes 30 stocks, including government bonds and monetary stabilization bonds, with a remaining maturity of more than 1 month and less than 1 year, and the duration (recovery period) is about 0.5 years.

'KODEX Short-Term Bond PLUS' (13th, KRW 118.3 billion), 'RISE Short-Term Bond Alpha Active' (14th, KRW 97.2 billion), 'TGIER US Dollar Short-Term Bond Active' (17th, KRW 76.6 billion), and 'KODEX CD 1-Year Interest Rate Plus Active' (18th, KRW 66.4 billion) were also included in the top net inflow of funds.

As government bond interest rates in countries such as the U.S. and the U.K. have risen to the highest level in decades, buying power appears to have focused on products that track rising interest rates or invest in bonds.

The U.S. 10-year Treasury bond interest rate, which is considered a benchmark for global interest rates, rose to 5.34% during intraday trading on the 1st (local time), breaking the 24-year high recorded the previous day.

The UK 30-year government bond interest rate rose to 6.029% during the day, and the French 10-year government bond interest rate also rose to 4.963% on this day, approaching 5%. These are the highest since 1998 and 2002, respectively.

In conjunction with this, the 3-year Treasury bond interest rate exceeded 4.1% on the 28th of last month, reaching the highest level since November 2022.

Kim Chan-hee, a researcher at Shinhan Investment & Securities, analyzed, "In the case of the United States, concerns over fiscal soundness, competitive capital raising demand, and weakening foreign investment demand remain as factors that increase the downward rigidity of mid- to long-term interest rates. Meanwhile, domestic credit spreads are expected to gradually widen until the end of the year, but carry (interest income) demand will protect against weakness."

At the same time, we maintained our top investment opinion on high-grade corporate bonds.

After the Chuseok holiday, stock market standby funds moved sideways, and 'debt investment' (investment through borrowing) funds increased slightly.

Investor deposits rose from KRW 101.6349 trillion on the 23rd of last month, just before the Chuseok holiday, to KRW 104.4892 trillion on the 28th and KRW 107.7257 trillion on the 29th, but returned to KRW 104.6377 trillion on the 1st.

The credit transaction loan balance, which is considered an indicator of debt investment, increased 2.1% from 32.7764 trillion won on the 23rd of last month to 33.4808 trillion won on the 1st.